Weekly Crypto Analysis December 10-16, 2018

Weekly Crypto Analysis December 10-16, 2018

Bitcoin

Source: tradingview.com

The Bitcoin price continued to head south and breached below our short-term ascending channel, which we have spotted in our last weekly crypto analysis. As we have said then, a downside breakout will expose the 3,500 key support area, and that’s exactly what happened.

The selling pressure had been strong enough to push the price below the level and so far, buyers had been weak, since the bears had managed to keep Bitcoin below 3,500. If the selling pressure will continue, we think buyers might react stronger around the key 3,000, which is also an important psychological level. There’s also the weekly 200 moving average, which had been a support zone in the past years.

If the buyers will push the price above 3,500, we could see a short-term rally towards the 4,000 area. At the present time, buyers find it hard to take control over the order flow but keep in mind that sellers won’t drive the market indefinitely.

Ether

Source: tradingview.com

In line with the Bitcoin performance, Ether had also broken below a short-term range and reached a new 2018 low. We’ve back to levels not seen since March 2017, this one being the biggest disappointment among the top ten cryptocurrencies.

Getting back to the chart, we see the bottom of the range treated as resistance following the break, confirming the sellers were willing to step in again there. The 81 level, which is also the current 2018 low, might hold if the price continues to weaken. If not, we expect the 72 to act as a very strong support zone, given that we see some spikes around it back in the first quarter of 2017.

On the upside, it will take a breakout back above the 98 resistance level to have hopes that Ether could recover towards the 120 area.

Tron

Source: tradingview.com

We’ve talked about in our previous weekly analysis, as well, and mentioned the 1.25 cents level as a key swing point. As you can see from the chart, the price weakened towards it and bounced higher, confirming that there was buying interest around it.

However, thus far the rejection is still weak, and we might see a new attempt from the sell side to break lower. This is a low-liquidity environment and false breakouts occur very often. We maintain our view on Tron and we think that the price could surge on the upside towards 1.7 cents, which is more than a 40% recovery.

A strong break below 1.25 cents and new 2018 lows will be required to negate our moderate bullish view. The 1 cent level will be critical in terms of importance, even if the price will break below 1.25.

Briefings about ICOs

According to icoalert.com, Linkchain is an ICO project that will be active for two more days. It represents a project that aims to develop a hybrid blockchain for secure buyer and supplier transactions.

In terms of upcoming ICOs, Blue Chip Vision will start its token sale on December 27th. It is a digital ecology of technology to designed to support blockchain systems and platforms.